Indian shares set for flat open as foreign outflows offset Asian gains
- GIFT Nifty futures were at 23,343 points
Indian shares are set for a muted start due to persistent foreign fund outflows and ongoing Middle East conflict concerns, despite positive cues from broader Asian markets. Benchmarks are down over 3% this month.
- Foreign investor outflows from Indian equities.
- Middle East conflict's impact on global markets.
- Asian market gains from AI-related applications.
Indian shares were set for a muted start on Wednesday as persistent foreign fund outflows offset positive cues from Asian markets, while concerns over the Middle East conflict remained an overhang.
GIFT Nifty futures were at 23,343 points, as of 7:49 a.m. IST, indicating a flat start for the benchmark Nifty 50 index, which closed at 23,329 on Tuesday.
Asian shares were headed for a sixth consecutive session of gains on Wednesday, as signs of continued consumer demand for AI-related applications supported technology stocks. MSCI’s broadest index for Asia-Pacific shares outside Japan rose 0.7%.
Foreign investors continued to shun Indian equities, with provisional data showing net sales of 38.1 billion rupees ($398.58 million) on Tuesday, marking their eighth selling session in the last nine trading days.
Overseas traders have sold Indian shares worth $1.81 billion so far in September, taking year-to-date outflows to $25.87 billion.
Brent crude futures were little changed around $99 per barrel on increased Gulf supply and hopes for a diplomatic solution to the US-Iran war through talks at the UN in New York.
While US President Donald Trump warned that he could “annihilate” Iran, he also said his envoys Steve Witkoff and Jared Kushner had held productive talks with mediators of Iran to end the war.
India’s benchmark Nifty 50 and BSE Sensex are down over 3% each this month on concerns over the impact of Iran war on inflation and interest rates globally.